What does Residual Market Loading mean? Read on to discover the definition & meaning of the term Residual Market Loading - to help you better understand the language used in insurance policies.
Residual Market Loading
A multiplicative factor applied to retrospectively rated workers compensation plans. Its purpose is to compensate insurers for the losses sustained when writing workers compensation risks in the residual market.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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